ZAMBEEF Plc | Press Release – 2014 full year results (Zambia) and annual report

November 26th, 2014

In accordance with the requirements of the Securities and Exchange Act No. 38, Zambeef Products PLC announces its results for the year ended 30 September 2014.

Operational Highlights

  • 2014 financial year has been a year two very different halves.
  • In H1 2014, the Group recorded a loss before tax of ZMW36.8 million;
    however, in H2 2014, the Group recorded a profit before tax of ZMW15.6 million.
  • H1 2014 performance adversely impacted by macro-economic challenges and external influences, however, H2 2014 saw a strong turnaround of the business, led by the Group’s core cold chain food product divisions.
  • Gross margin decreased from 34.7 per cent. for September 2013 to 33.8 per cent. for September 2014; however, robust cost control measures resulted in the cost/income ratio improving from 26.6 per cent. (2013) to 26.3 per cent. (2014).
  • Net cash inflow from operating activities was a creditable ZMW81.6 million.
  • The two JVs with Rainbow (Zam Chick and Zamhatch) are progressing smoothly and we expect to see the full benefits over the next 12 months, when Zamhatch becomes operational.
  • Acceleration of our strategic priorities, which include: the retailing of cold chain food products; forging strategic alliances and partnerships with acknowledged industry players; unlocking value and capital gains from within the Group (and reduce debt/gearing); and developing the business into a regional food supplier.

Commenting on the results, Chairman Dr. Jacob Mwanza, said:

“We are pleased to say that following a difficult year in 2013, which continued into the first half of the current financial year, the business has moved forward strongly in the second half of 2014, and we are hopeful that this situation will continue throughout the 2015 financial year.

We believe that the continued execution of our strategy will position us strongly to take advantage of the growth opportunities available. There remains a number of key longterm growth drivers for our business which present significant and tangible opportunities: a rapidly expanding consumer base, fuelled by an emerging middle class, increasing per capita income, rapid population growth and high levels of urbanisation.

Therefore we look forward to making continued progress towards our aim of becoming a leading regional food supplier.”

For further information, please contact:
Zambeef Products PLC
Carl Irwin, Joint Chief Executive Officer
Tel: +260 (0) 211 369003
Francis Grogan, Joint Chief Executive Officer

Pangaea Securities Limited
Ceasar Siwale, Chief Executive Officer
Pangaea Securities and Trading

Accordingly, investors in Zambeef Products PLC are advised to exercise caution when trading in the Company’s shares and should seek the professional advice of a broker or investment advisor for guidance.